If you have an expansion plan and aim to have higher growth with high investment, then a Private Limited Company is the best option for you.
A corporate body always aims to provide the best quality goods possible and also the best services. There are now several types of business forms in the market under the new laws. But out of all, a private limited company has the most credibility. It also creates the most business value after the registration of the company in India. Private limited companies are regulated by the Companies Act, 2013, and governed by the Ministry of Corporate Affairs (MCA).
Properties of a Private Limited Company
- Under Section 2(68) of the Companies Act 2013, a private limited company is a privately owned business and also has a separate legal entity.
- A private limited company has a minimum of 2 members or directors and a maximum of 200. It doesn’t include past and present employees. And among all the directors, one needs to be a resident of India.
- Private limited companies have perpetual succession.
- It doesn’t require any fixed amount of paid-up capital.
Private Limited Company Compliances Easy Process
At the end of a financial year, private limited companies need to fulfill their annual compliance process. It requires an annual general meeting, a board meeting (participation of directors is compulsory), and an annual report.
In case you don’t fulfill the private limited company compliance process, you’ll have to pay high penalties along with the late fees. Not fulfilling compliance of private limited companies in India could be really problematic at the time of closing the company.
The Benefits of Registration of a Private Limited Company
- Value of business: Registration of a private limited company increases its brand value. Since it is registered under MCA, it shows the trust of the government in the company; which further builds the trust factor in traders as well and makes them willing to work together.
- Limited liability: It is the main factor that a private company’s registration ensures that the personal assets of shareholders are safe. Banks can only seize your company’s assets and not your personal assets. Shareholders will be liable only for the amount of their investment in the company.
- Separate legal entity: Private limited company registration ensures that the company now has a separate legal entity and is not tied to its owners.
- Easy process: It has a quick and simple process for transferring its share to others. This benefit can be provided only after the registration of your private limited company.
- Works globally: The Companies Act, 2013 allows private limited companies to work globally. Foreigners can even invest in this company with no stressful process.
- Benefits of fundraising: It can be done through bank loans, investor funding, online orders, and even international orders. If your private company gets registered, bank loans are very easily available.
- High credibility: It gets listed on the stock market openly and even allows the private limited company to work on an international level. It also creates excellent opportunities to work with larger companies.
Private Limited Company Registration Procedure
- Apply for DSC and DIN: For a Private Limited Registration Online, you need to apply for a Digital Signature Certificate for all initial members and directors and a Digital Identification Number for just directors of the company.
- Name approval: It is the most important process of a private company’s registration in India. You can only proceed to further processes if your name gets approved. The fee for name approval is 1000 INR.
- Fill out the Spice+ form: Online private limited company registration requires all the information about the company. Like, as proof of registered office address with NOC (if rented). A copy of an electricity bill or another utility bill, but no bill should be older than 2 months. After filling in all the required information, pay the government fees.
- Drafting of eMOA and eAOA: Make drafts of the Memorandum of Association and the Articles of Association, which contain all the rules, regulations, and information about managing the external and internal issues of the company. It is done with the help of a consultant for the Private Limited Company Registration Online.
- File Agile Pro form: It contains all the extra documents for the online registration process. Upload these documents with the required fees on the website of MCA. Registration charges depend on your office’s state and also on the number of directors.
Within a time period of approximately 7-10 days, if your application is approved, you will receive the Incorporation Certificate. You’ll receive the incorporation certificate on your registered email ID. PAN and TAN for the company that comes along.
Documents Required for the Online Private Limited Company Registration
Members and Directors– Each director must provide an Aadhaar Card, a PAN Card, a Photo, and a Bank Statement. These documents are also required of the members of the company for private company registration.
Company’s– Any utility bill of maximum 2 months old, registered office address proof, and NOC from the owner itself for the registration of a private company.
Opening of a Company’s Current Account after Registration India
After the Private Company Registration in India, you can further open your company’s current A/c by giving the PAN Card of the company, MoA, AoA, Incorporation Certificate, and all the required documents along with the Company’s Identification Number (CIN).
Mistakes to Avoid while Registering a Pvt Ltd Company
Before you start to register your private limited company in India, we would like you to know that this registration process isn’t an easy one. You’ll need a CA/CS or lawyer to complete the process of private company registration. MCA officers require the digital signature of the expert whom you hire. You can also hire consultants for better help.
You can also reach out to us for a better understanding and satisfying results. JustStart will guide you through all the steps of Incorporation and Registration of your company. We also make the tough process of compliance very convenient for your business at a very reasonable price. And rest assured of the results. It is guaranteed to be very easy, comfortable, and quick.
